Published on 7/2/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $767,000 contingent income autocalls on Nasdaq, Russell, S&P
By William Gullotti
Buffalo, N.Y., July 1 – Morgan Stanley Finance LLC priced $767,000 of contingent income autocallable securities due July 3, 2024 tied to the worst performing of the Nasdaq-100 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 5.25% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.
The notes will be automatically called at par if each index closes at or above its initial level on any quarterly call determination date after six months.
If all indexes finish above the coupon barrier, the final coupon will be par plus the final coupon.
If any index falls below the coupon barrier but all indexes finish at or above the downside threshold level, 60% of its initial level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the final index value of the lowest-performing index.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index, S&P 500 index
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| Amount: | $767,000
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| Maturity: | July 3, 2024
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| Coupon: | 5.25% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above coupon threshold, par plus the final coupon; if any index falls but each finish at or above the downside threshold level, par; otherwise, full exposure to decline of lowest-performing index from its initial level
|
| Call: | At par if each index closes at or above its initial level on any quarterly call determination date after six months
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| Initial levels: | 14,524.98 for Nasdaq, 2,322.336 for Russell, 4,290.61 for S&P
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| Coupon barriers: | 10,167.486 for Nasdaq, 1,625.635 for Russell, 3,003.427 for S&P; 70% of initial levels
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| Downside threshold levels: | 8,714.988 for Nasdaq, 1,393.402 for Russell, 2,574.366 for S&P; 60% of initial levels
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| Pricing date: | June 28
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| Settlement date: | July 1
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.5%
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| Cusip: | 61773FBJ1
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